The payment of Profit Share is no longer triggered by a profit margin of 7.5% for the airline, which is just as well as the profit margin for the airline in ’06 was 7.1%. The new formula pays some Profit Share as long as the airline profit margin is positive. Following the new formula, the margin of 7.1% has been multiplied by 0.75 producing a figure of 5.3% which is applied to the total airline profit. In other words, 5.3% of the airline’s profit for 2006 is to be shared amongst its employees a total pot of HK$179m.
What we need in future years is a profit margin of 13.3% so that 10% of the airline’s profit gets shared out.
Am I correct in thinking that with this "new formula" if our profit was to double we would still only get 12-13 days?
